The Phuket residential resort condominium market was quieter in terms of new launches and sales during the third quarter of this year.
According to research from real estate firm CBRE Thailand in its latest Phuket Residential report, entry-level property units with average prices of THB 5 million have continued to be the best sellers in the subdued market.
The report noted that entry-level villa units offer an alternative to mid-range and high-end condominium units.
It noted the major points for the market in Q3 were:
- The number of condominium units launched this quarter was almost double that of last year.
- Four projects were launched in this quarter: two entry-level and two luxury projects.
- The one-bedroom unit remained the most popular product on the island.
- Buyer profiles are a mix and different from one project to another.
- There is clear evidence of Chinese (PRC) buyers in all project segments but they are not the dominant group.
The total completed supply of resort condominiums amounted to around 5,600 units, with a further 4,500 units in the pipeline and expected to be completed before 2018, the real estate firm noted.
It also said that a guaranteed rental scheme remained essential to compete in the market. There was evidence that developers of mass-market condominium projects have adopted a similar rental schemes.
In its summary, CBRE Thailand said that going forward, the Phuket residential property market should have shown some evidence of picking up in the final three months of 2015, which is Phuket’s high season.
With Phuket airport’s extension due to be opened in 2016, more flights routes may change the profile of tourists and property buyers. CBRE Thailand expects growth in Phuket tourism and expects that fact to help in the sales of resort condominiums.
